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Consumer Affairs Victoria has succeeded in having the director of two building companies disqualified from managing a corporation until 2017.

This is the first time a director has been disqualified in Victoria using new powers under the Australian Consumer Law.

Melbourne Magistrates’ Court found that Mehmet Mehmet, of Hallam, and his two companies - Architeck Homes Pty Ltd and Unibase Homes Pty Ltd – breached the Fair Trading Act 1999, the Australian Consumer Law and the Domestic Building Contracts Act 1995.

The court granted a banning order against Mr Mehmet that disqualifies him until 30 June 2017. It also ordered that Mr Mehmet and the companies pay total costs of $14,306.50.

Final injunctions were granted against the companies for accepting payments from nine customers - in Truganina, Cranbourne East, Point Cook, Caulfield South and Keysborough - but failing to build their homes within the required time under the contracts.

As well as being director, Mr Mehmet was also the building practitioner for each of the nine major domestic building contracts to which the offences related.

Interim injunctions had been granted against the companies in December last year.

The court ordered that until 1 January 2018, Architeck Homes Pty Ltd and Unibase Homes Pty Ltd be restrained from:

demanding or accepting any payments for a stage of construction unless the work has been certified as complete by the building surveyor named on the building permit, or an independent architect paid for by the company

disbursing any payments received under a major domestic building contract unless to pay for goods or services under the contract

entering into any major domestic building contract as a builder, without the written approval of the Director of Consumer Affairs Victoria.

Mr Mehmet was also restrained from aiding, abetting, counselling or procuring a person to engage in, or be knowingly concerned in, or a party to, any conduct of the two companies restrained by the court orders.